Doing business with the united nations

DOING BUSINESS WITH

THE UNITED NATIONS

(UN) Kerry Kassow, High Level Committee of Management’s

Procurement Network (HLCM PN)

Agenda

HLCM Procurement Network

UN Procurement & Statistics

UN System of Organisations

Supplying the UN

Finding Information – UNGM

General UN Procurement Procedures

Practical Tips

High Level Committee of Management’s

Procurement Network

The Procurement Network - Heads and Directors of 36 Agencies. Focuses on:

Strategic Vendor Management • Vendor related matters • Supplier outreach

UN Global Marketplace (UNGM) • Common UN Procurement Portal

Professional Development • Recognition of procurement as

strategic function • Professional Certification • Knowledge Sharing

Harmonisation • Supporting harmonised UN

Procurement

Sustainable Procurement • Guidelines on IT, Furniture,

Cleaning Products, Catering, Vehicles etc.

• Sustainable Procurement Guide • Advisory Services

UN Procurement & Statistics

Procurement & United Nations ultimate

goals

The UN is committed to sustainable and

equitable development

World leaders and the UN have formed a

global partnership to reduce extreme poverty

with a deadline of 2015 – a number of targets

known as the Millennium Development Goals

The UN Secretary General has asked all UN

agencies, funds and programmes to become

climate neutral and “go green”

Procurement is now recognised as a relevant

component of the common effort towards

sustainability

Procurement & United Nations ultimate

goals

The UN Global Compact and the

Supplier Code of Conduct

The UN strongly encourages all vendors to actively participate

in the Global Compact

The Global Compact promotes principles of human rights,

labour,

environment and anti-corruption

www.unglobalcompact.org

The UN Supplier Code of Conduct spells out the principles that should

inspire the business practice of suppliers

The UN Supplier Code of Conduct provides the minimum standards

expected of suppliers to the UN

www.un.org/depts/ptd/code_of_conduct

Total UN procurement of goods and

services 2009-2013

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2009 2010 2011 2012 2013

7,403 7,469 7,210 8,564 8,450

6,394 7,075 7,066

6,808 7,634

Goods

Services

USD Million

15.37

14.27 14.54 13.79

16.08

Procurement volume of the 10 principal UN

agencies 2013

0

500

1000

1500

2000

2500

3000

3500

2012

2013

2,997

2,741 2,629

2,477

953

772 749 585

366 289

USD Million

10 major countries of supply to the UN

System 2013

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1,101

128

449

650

253

50 138 139

244 307

569

953 268

50

299

500 364 370 250 86

Goods

Services

USD Million

Major goods procured by the UN System

Goods

• Food & Nutrition

• Pharmaceuticals & vaccines

• Motor vehicles & parts

• Textiles, incl. clothing, tents,

blankets, mosquito nets etc.

• Medical, lab. & hospital

equipment

• Petroleum & fuel products

• Computer & IT equipment, incl.

software

• Books, paper, office stationery &

supplies

• Furniture

Major services procured by the UN System

Services

• Transport services

• Construction, engineering and

architectural services

• HR, consultants and project staff

• Building & machinery

maintenance & repair

• Travel

• Leasing & rental services

• Computer & IT services

• Financial & auditing services

• Management services &

consultancy

UN procurement from Finland

0

5

10

15

20

25

30

35

2010 2011 2012 2013

Services

Goods

32.9

19.3

Buying from Finland

(USD Million) 2013

UNFPA 22.40

UNDP 3.60

UNICEF 2.38

UNU 1.27

WHO 1.16

USD Million

33.3

21.8

Major goods and services supplied by

Finland

Goods

Pharmaceuticals

Power Generation

Machinery

Medical Equipment

Safety & Security

Equipment

Services

Administration

Transport

Engineering

UN System of Organisations

UN System of Organisations

The United Nations is not a single organisation but is in fact

made up of a variety of organisational entities (agencies,

organisations, commissions, programmes, funds, etc)

Each organisation is a market in itself and has a different

function, its own characteristics and requirements i.e.

UNICEF, WFP, UNHCR

Important to recognise the above if you wish to do business

with the UN as each organisation has its own procurement

department, and processes and procedures may differ slightly

Supplying the UN

Are you ready to supply the UN?

Market knowledge (UN structure and culture)

Suitable products/services

Export experience/references

Languages

Competitive prices

Networks/partners (country knowledge, after-sales

services etc.)

Capacity (financial, personnel)

Intercultural skills

Flexibility

Accuracy

Persistence and patience

Step-by-step towards success

Market research, identify relevant UN

Organisations, register

Understand the procurement practices,

seek opportunities

Bid according to tender documents,

observe norms and standards, seek clarification

Performance

Finding Information

Web-based information

UN Procurement’s single commercial and procurement portal:

United Nations Global Marketplace (UNGM) www.ungm.org

Business information

The Annual Statistical Report

– UN procurement by country

– UN Agency procurement by country, commodity or service

– Purchase orders and Contracts (over USD 30,000) placed by agency, by country of vendor, value and description of goods or services

– Top Ten items procured by Agency

The General Business Guide

– Lists all UN Organisations, fields of activity, procurement activities and requirements and registration procedures

Available from www.ungm.org

Register as a Potential Supplier www.ungm.org

The UN Global Marketplace (UNGM)

Register - free of charge

Business opportunities

Subscribe to Tender Alert Service

Help? [email protected]

UN Procurement Procedures

Common Guidelines for UN Procurement

Procurement activities of the UN system are based on the

following:

The objectives of the UN Organisation

Fairness

Integrity & accountability

Transparency

Effective competition

Best value for money

The common guidelines cover procurement stages from

sourcing to execution of a contract - www.ungm.org

Common General Terms & Conditions

Cover both the procurement of goods and the

contracting of services

Most provisions are common within the UN system –

some may vary in text depending on agency

requirements

Potential suppliers are encouraged to familiarise

themselves with the UN General Terms & Conditions.

Available at www.ungm.org

How is the procurement method decided?

the value of the procurement

the nature of the goods and services to be procured

critical dates for delivery

Types of solicitation

Expression of Interest (EOI) - interested suppliers

requested to provide information on their products,

resources, qualification etc.

Request for Quotation (RFQ) - less formal solicitation

used for lower value procurement (e.g. < USD 30,000*)

Invitation to Bid (ITB) - formal solicitation method for

well-defined goods (or services); contract award is

based on lowest acceptable bid (e.g. > USD 30,000)

* Thresholds may vary

Types of solicitation

Expression of Interest (EOI) - interested suppliers

requested to provide information on their products,

resources, qualification etc.

Request for Quotation (RFQ) - less formal solicitation

used for lower value procurement (i.e. USD 30,000 *)

Invitation to Bid (ITB) - formal solicitation method for well-

defined goods (or services); contract award is based on

lowest acceptable bid (e.g. > USD 30,000)

Evaluation Criteria for Invitations to Bid (ITB)

Bids are always evaluated according to the principle

of …

“lowest price

meeting technical specifications

and stated requirements”

Types of solicitation

Expression of Interest (EOI) - interested suppliers requested to provide information on their products, resources, qualification etc.

Request for Quotation (RFQ) - less formal solicitation used for lower value procurement (< USD 30,000*)

Invitation to Bid (ITB) - formal solicitation method for well-defined goods (or services); contract award is based on lowest acceptable bid (> USD 30,000)

Request for Proposal (RFP) - formal solicitation, generally for services, whereby the contract award is based on a combined (weighted) evaluation of both the technical solution and price (> USD 30,000)

* Thresholds may vary

Types of solicitation

Expression of Interest (EOI) - interested suppliers

requested to provide information on their products,

resources, qualification etc.

Request for Quotation (RFQ) - less formal solicitation

used for lower value procurement (i.e. USD 30,000 *)

Invitation to Bid (ITB) - formal solicitation method for well-

defined goods (or services); contract award is based on

lowest acceptable bid.

Request for Proposal (RFP) - formal solicitation whereby

the contract award is based on a combined (weighted)

evaluation of both the technical solution and price.

* Thresholds may vary

Evaluation Criteria for Requests for Proposal (RFP)

Always evaluated according to the principle of best

value

Best value: best overall benefit, both technically

and financially

Generally, the technical proposal will be given 60%-

70% of the overall score, and 30%-40% will be given to

the financial proposal

The evaluation criteria are set out in the RFP

In summary

Up to 30,000 USD*

- Informal, simplified acquisition procedure - Requests for Quotation (RFQ) - Minimum 3 responsive quotes recommended - Lowest priced, technically acceptable bidder or best value bidder (evaluated).

Above 30,000 USD*

- Invitation to Bid (ITB) and Request for Proposal (RFP) - Open and formal: advertised (on the web) generally larger

shortlist (minimum 6 potential bidders, 3 to comply) - Public bid opening

- CPO approval after review and recommendation by Contract Committees

* Thresholds may vary

In addition . . .

Long Term Agreement/Frame Agreement

Based on ITB or RFP process

2-4 years period

Potentially more than one LTA for same goods/service

Single tendering exercise reduces administrative effort

The supplier benefits in terms of continuity of supply

Direct Contracting

Exception to the rule

In case of extreme emergency

Sole source

If competitive bidding process has failed for valid reason

Very stringent controls and has to be well justified

Evaluation Criteria

Acceptance of UN payment terms, terms & conditions etc.

Technical Requirements

Delivery Terms & Delivery Time

Recognised International/National Standards

Supporting Documentation

Proven Production Capacity & Financial Strength

Previous Contract References

Warranty Conditions & Appropriate After-sales Service

Price

How are vendors identified?

Competitive suppliers of previous procurement

- Past performance

Suppliers of the required goods or services, found on

the UN Global Market

- Codification

Through calls for Expression of Interest (EOI)

- Notices

Search of World Wide Web

Databases e.g. Kompass, DACON

Trade Missions, Chambers of Commerce

Exchange with other UN Agencies

Practical Tips

General

Always respond to bid invitations – if you cannot submit

an offer, inform accordingly

Bid Preparation

Study bid documents, conditions and requirements

carefully

Ask for clarification if uncertain

Ensure that your offer meets ALL bidding requirements

Technical specifications – read carefully and meet

minimum requirements

Quality statements – international/national standards

Practical Tips

Alternative proposal may be provided, in addition to

what is being asked for

Submit bid, catalogues etc. in requested language

Prepare bid to facilitate work of procurement officer -

requested format, use submission forms

Bid Submission

Meet deadline

Attend public bid openings, whenever called

Remember

Learning process

Thank you!

Contact: [email protected]